In 2012, Gazprom Neft signed a production sharing agreement with KRG to develop the Shakal and Garmian Blocks. (Image source: Eric Kounce/Wikimedia Commons)Gazprom Neft has began drilling an exploration well at the Shakal Block in Kurdistan Region of Iraq

The Russian company said that it will also commence drilling on a second exploration well in the block.

The project will study two oil reservoirs in the Shakal Block including flow testing. Gazprom Neft said that both wells will have a depth of up to 3.5km and the well testing will be completed by late 2014 or early 2015.

Canada’s Grey Wolf will serve as the contractor of the project based on the company’s extensive experience in the region. Earlier, 2D seismic surveys have been conducted covering an area of more than 1,000 linear kilometres at the Shakal Block, where an exploration well has also been drilled, according to the company.

Gazprom Neft is currently involved in two other projects in the autonomous region. The company is conducting geological surveys of the Halabja Block where it is planning 2D seismic surveys covering 1,000 linear kilometres in 2014, and would be drilling the block’s first exploration well in 2015-2016. It is also involved in the development of the Garmian Block where the deposit is currently undergoing further exploration and preparation for full scale development.

Gazprom Neft is the operator of the Shakal and Halabja projects, in which it owns an 80 per cent stake each.

The Kurdistan Regional Government (KRG) is currently considering the initial field development plan.